Bulletin: SC2018001

Date:
January 25, 2018
To:
All South Carolina Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - Revised Rate Manual

Dear Associates:

The South Carolina Department of Insurance has approved a revised Rate Manual for South Carolina, effective February 6, 2018. Please take the opportunity to familiarize yourself with the updated Rate Manual, which the Department of Insurance has approved for use in South Carolina as of February 6, 2018. 

In addition to stylistic changes, the following substantive changes will take effect:

Extension of Loan Policies:

The charges for extension/date-down of loan policies have been extended and simplified.

TERM

CHARGE

Up to 2 years

20% of Basic Schedule of Charges

Over 2 years and up to 5 years

35% of Basic Schedule of Charges

Over 5 years and up to 10 years

50% of Basic Schedule of Charges

Over 10 years

100% of Basic Schedule of Charges

Reissue Charge:  

The reissue rate will be 50% for residential and commercial properties (formerly 60% on residential properties).

Owners, Loan and Leasehold:

When a policy has been issued on the same property within 10 years, a reissue charge of 50% on residential or commercial properties of the original charge shall be applicable up to the face amount of the previous policy, except when the application is for coverage on a second or subordinate mortgage.

Builder Construction Loan Credit Lines and Additional Property:

A new section has been added which addresses the proper charges for a Builder Construction Loan Credit Line.

For the purposes of determining the charge for an endorsement adding lots to an existing builder construction credit line loan policy, the additional charge shall be based on the value of each new parcel or real estate added to the policy’s coverage after its original issuance at the Basic Schedule of Charges. Lots may be added to the original loan for no charge until the value of the property added equals the original amount of insurance. For example, if a $1,000,000 construction loan initially secures 10 lots worth $30,000 each, for a total of $300,000, the insured has $700,000 remaining as a “credit” on the line. That “credit” amount is reduced by the cost of each new lot plus the cost of construction of improvements on the new lot. Thereafter, a charge will be made for any endorsement adding a new lot to the mortgage. That charge is based on the value of the new lot plus the cost of construction of improvements as the Basic Schedule of Charges.

NOTE:  Agents please contact PropertyInfo Customer Care, or your respective title production software vendor, to have the new rate changes implemented in your system, to be effective as of February 6, 2108. 

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None